Glasgow-based media firm STV Group plc said on Wednesday it is on track for record year in advertising, with total advertising revenue for the full year 2021 expected to be up 22%-24% on 2020.

In a trading update, STV said its Q4 performance was stronger than expected, despite tough comparators. The firm’s shares rose about 7%.

STV also announced that the STV Growth Fund will be increased from £20 million to £30 million in 2022. 

Since launching in 2018, the STV Growth Fundhas allocated £15.7 million across more than 700 deals with Scottish SMEs, attracting over 300 new advertisers to television.

Previous guidance that STV Studios is on track for its best ever financial performance in 2021, with full year revenue of £20 million-£25 million, was reconfirmed.

STV CEO Simon Pitts said: “The speed and scale of the advertising recovery in 2021 has far exceeded our expectations and underlines the enduring power and relevance of high-quality video advertising.

“2021 will deliver STV’s highest ever advertising revenues, with brands choosing broadcast and video on demand advertising to boost their post-Covid recovery due to its unrivalled levels of trust, brand safety and value.

“I’m very proud that our STV Growth Fund has now enabled over 300 Scottish SMEs to access TV advertising for the first time, including around 150 since the start of the pandemic.

“I’m delighted to announce that the fund will be increased to £30m in 2022 to help drive Scotland’s economic recovery.”